Depreciation

Allowance for Doubtful Accounts is a contra asset; its balance is added to Accounts receivable.

• TRUE

• FALSE

All of the following properties fall under the definition of investment property, except

• Land held for long-term capital appreciation

• Property occupied by an employee paying the market rent

• Land held for a currently undetermined use

• A building owned by an entity and leased out under an operating leased

Which of the following statements regarding investment property is correct?

• If the entity elects the fair value model, no depreciation is taken

• Gain or loss from fair value adjustments is reported in the income statement

• If the entity elects the cost model, depreciation should be recognized

• All of these statements are correct regarding the investment property

How would China react to a depreciation of its own currency (the yuan)?

• It would not react to a change in the value of the currency

• The quantity of yuan supplied would increase

• The quantity of yuan supplied would decrease

An investment property shall be initially measure at

• At cost

• Cost less accumulated impairment losses

• Depreciable cost less accumulated impairment losses

• Fair value less accumulated impairment losses